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If interest rates increase from 6 percent to 7 percent, which of the following bonds will have the largest percentage decrease in its value? a.
If interest rates increase from 6 percent to 7 percent, which of the following bonds will have the largest percentage decrease in its value?
a. | A 10-year zero-coupon bond. |
b. | A 10-year bond with a 10 percent semi-annual coupon. |
c. | A 30-year zero-coupon bond. |
d. | A 5-year zero-coupon bond. |
e. | A 5-year bond with a 12 percent semi-annual coupon. |
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